Highlights
Rising oil prices are pushing bond yields higher again Wednesday as the US-Iran war continues and signs of renewed diplomacy fade again. The threat of Houthi attacks closing off Saudi oil transit through the Red Sea has added to the range of fears. The Saudis have rerouted significant oil shipping through the Red Sea passage as an alternative to the Strait of Hormuz.
On Wednesday, Secretary of State Marco Rubio told reporters Iran is not serious about diplomacy and that US attacks would continue as long as Iran does not allow traffic through the Strait of Hormuz.
Among the day's modest batch of scheduled macro news events, the weekly US EIA oil inventories report may take on unusual interest. The report, due at 10:30 am ET, is expected to show another decline in crude oil and gasoline inventories as the drawdown in supplies reflects high demand for US petroleum amid the disruptions in energy supplies from the Mideast.